Project Details
Project
Ethias Sustainable Financing Framework Second-Party Opinion (2025)
Client
Ethias SA
Project Type
Sustainability Bond/Loan
Industry Group
Insurance
Use of Proceeds
Renewable energy; Green buildings; Clean transport; Energy efficiency; Pollution prevention and control; Natural resources/land use management; Affordable housing; Access to essential services;
Location
Belgium
Evaluation Date
Mar 2025
Evaluation Summary
Sustainalytics is of the opinion that the Ethias Sustainable Financing Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Green Buildings, Clean Transportation, Energy and Resource Efficiency, Pollution Prevention and Control, Living Natural Resources and Land Use, Affordable Housing and Access to Essential Services – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 7, 9, 11 and 12.
PROJECT EVALUATION AND SELECTION
Ethias’ Sustainable and Responsible Investment Committee is responsible for evaluating and selecting eligible projects in line with the Framework’s eligibility criteria. Ethias will identify, evaluate and manage environmental and social risks associated with the eligible assets in line with its Social and Responsible Investment Policy and due diligence procedures. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Ethias’ Sustainable and Responsible Investment Committee will manage the allocation of proceeds on a portfolio basis and track allocations to eligible assets using an internal project tracking tool. Ethias intends to allocate all proceeds to eligible projects within three financial years of issuance. Pending full allocation, unallocated proceeds will be invested, managed or held in cash or government treasury securities. This is in line with market practice.
REPORTING
Ethias will report on the allocation of proceeds and the corresponding impacts on its website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to eligible projects, the total number of eligible projects, the balance of unallocated proceeds and the amount or share of financing versus refinancing. Sustainalytics views Ethias’ allocation and impact reporting as aligned with market practice.